COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 2010-14

May 4, 2010

TO THE HEADS OF ALL STATE AGENCIES

Attention: Agency Heads, Chief Fiscal Officers and Business Managers
Subject: Annual Inventory Report of all Real and Personal Property
With New Requirements for Fiscal Year 2010

I. AUTHORITY
Section 4-36 of the Connecticut General Statutes states: "Each state agency shall establish and keep an inventory account in the form prescribed by the Comptroller, and shall, annually, on or before October first, transmit to the Comptroller a detailed inventory, as of June thirtieth, of all of the following property owned by the state and in the custody of such agency: (1) real property, and (2) personal property having a value of one thousand dollars or more. For audit purposes, each state agency shall establish and keep a list of personal property having a value of less than one thousand dollars and defined as 'controllable property' in the property control manual published by the Comptroller."

II. DUE DATE
As prescribed by the statute, agencies must transmit this report to the State Comptroller on or before October 1, 2010.

III. REPORTING REQUIREMENTS
Refer to the State Comptroller's Property Control Manual, Chapter 3 and Appendix B. The required reporting forms are listed below:

- CO-59 Asset Management/Inventory Report/GAAP Reporting Form (Rev. 5/2010)
- Summary Licensed Software Report (New for FY 2010)
- CO-648B Summary Motor Vehicle Report (Rev. 4/2009)
- Property Control Questionnaire

A. CO-59 ASSET MANAGEMENT/INVENTORY REPORT/
GAAP REPORTING FORM
All Executive Branch agencies must use the Core-CT Asset Management module to complete the information requested on the CO-59. Agencies using the Inventory module or a separate inventory system are required to report their stores and supplies inventory on the CO-59.

Agencies not using the Core-CT Asset Management module are still required to report their assets on the CO-59 form using their asset management systems.

Executive Branch agencies are expected to use the Asset Management and Inventory queries below to complete the CO-59 form for fiscal year 2010. If the values recorded on the CO-59 do not reconcile with Core-CT, the agency must provide a written explanation of the discrepancy in an attachment.

Asset Management Queries
CT_CORE_FIN_AM_COST_POS
Select this query to calculate the positive cost of assets for a range of accounting dates for the CO-59 report.

CT_CORE_FIN_AM_CO59_POS_DETAIL
Select this query for detail information to support the above query.

CT_CORE_FIN_AM_COST_NEG
Select this query to calculate the negative cost of assets for a range of accounting dates for the CO-59 report.

CT_CORE_FIN_AM_CO59_NEG_DETAIL
Select this query for detail information to support the above query.

Inventory Queries (Stores and Supplies) for agencies using the Inventory Module
CT_CORE_FIN_IN_CO_59_RCV
Select this query to calculate the items in Inventory for a range of transaction dates for the CO-59 report.

CT_CORE_FIN_IN_CO_59_DEP
Select this query to calculate the depletions of items in Inventory for a range of
transaction dates for the CO-59 report.

Asset Management Report
AMAS2000-Cost Activity Detail Report
Select this report to assist with the physical inventory reconciliation. Agencies must process all fiscal year 2010 changes by close of business July 13, 2010. The Core-CT navigation path for this report is Asset Management > Financial Reports > Cost and Depreciation > Cost Activity Report. The final report cannot be run until after July 15, 2010. The link to the job aid on running this and other Asset On-Line Reports is
http://www.core-ct.state.ct.us/user/finjobaids/docs/am/run_asst_mgt_rpt.doc.

Two New Asset Categories
Two new asset categories have been created on the CO-59 for fiscal year 2010, EASE for permanent land easements and LSOFT for licensed software. These new asset categories have been added because of the requirements of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets which must be implemented for fiscal year 2010. Both new profiles are being established in Core-CT after the new fiscal year begins. Agencies will be provided additional information on when and how the data will be entered in Core-CT that will match the data on the CO-59 for the new asset categories.

The category of EASE for Easements is to be used by agencies that have permanent land easement rights for a piece of property. The cost of all permanent land easements acquired during fiscal year 2010 is to be reported on the CO-59 and then the data will be entered into the Asset Management Module of Core-CT in fiscal year 2011. From this point forward all permanent easements acquired will be recorded as they are purchased.

The category of LSOFT for Licensed Software is to be used for agencies that have licensed software. For this category data is required for the past six years beginning with fiscal year 2005 and going prospectively. The data should have been captured in the agency software inventory as required by the Property Control Manual. The information is to be accumulated and reported on the Summary Licensed Software Report and CO-59 forms. The transactions will be recorded in the Asset Management Module in Core-CT in fiscal year 2011.

The revised CO-59 form is available at http://www.osc.ct.gov/agencies/forms/index.html . Complete the CO-59 form as directed below.

Cost (Value) Data Section

The ending property balances from the previous year's (2009) CO-59 column 6 need to be recorded as this fiscal year's beginning balances in "Last Year's Balance" column 3.

Record all property additions for the fiscal year in the "Additions" column 4 at the property's original cost if purchased or fair market value if donated or transferred. Additions should include transfers from the State and Federal Property Distribution Center.

Record all property deletions for the fiscal year in the "Deletions" column 5 at the original cost or value of the property when it was placed on the property listing. Deletions should include property scrapped, lost, and transferred to the State and Federal Property Distribution Center.

Any real property sold, transferred or demolished should be reflected in the "Deletions" column. The deletion amount should reflect the original acquisition cost if purchased or the fair market value if acquired by donation.

The "Current Balance" column 6 is the cost or value column for all property held by the agency at fiscal year end. Last year's balance plus any additions, less any deletions must equal this column.

Current Value Section

The "Present Value This Year" column 7 for the Personal Property Section should reflect the appraised value or book value for the fine art category.

B. (NEW) SUMMARY LICENSED SOFTWARE REPORT
This form is for use for this year only. Complete this form by providing total cost information for all agency licensed software purchased during each of the past five fiscal years. The licensed software must meet the capitalization threshold of $1,000 or more. The total cost of all five years should be listed as last year's balance in column 3 for asset category LSOFT on the CO-59 for fiscal year 2010. Any costs for fiscal year 2010 should be reported in column 4 as additions to LSOFT. The form is available at http://www.osc.ct.gov/agencies/forms/index.html.

C. CO-648B SUMMARY MOTOR VEHICLE REPORT
Complete the CO-648B form by indicating the total number of motor vehicles owned by the agency for each category. The form is available at http://www.osc.ct.gov/agencies/forms/index.html. The Department of Administrative Services will report all Fleet vehicles. All other agencies will report agency-owned motor vehicles.

D. PROPERTY CONTROL QUESTIONNAIRE
Complete the Property Control Questionnaire with the name, address, telephone number and e-mail address of the person responsible for property control. The Comptroller's Fiscal Policy Division would also like to know if assistance is required with the Core-CT Asset Management module or the Core-CT Inventory module. Please email the form to OSC.Assets@po.state.ct.us

E. LISTING OF STATE OWNED LAND
For the Legislative Branch, Judicial Branch and Higher Education agencies that are out of scope for the Asset Management module in Core-CT, the listing of State owned land will be sent electronically to each applicable agency. Please confirm the information to the Fiscal Policy Division by October 1, 2010, in conjunction with the filing of the CO-59 Report. All new acreage should be added to the electronic file and highlighted. Any acreage that was sold or transferred should be highlighted on the electronic file as well. Return the electronic file to OSC.Assets@po.state.ct.us

IV. GENERAL INFORMATION
All agencies are required to conduct an annual physical inventory of their assets and stores and supplies inventory. All Executive branch agencies must reconcile and process their physical inventories in Core-CT by close of business July 13, 2010 so that the information will be included in fiscal year 2010 Financial Reports and Statements. In preparation for this annual inventory, agencies should create all new scan scopes, extracts and occurrences.

To assist agencies with processing a physical inventory in Core-CT, there are Physical Inventory Job Aids. These job aids are located on the Core-CT website on the Asset Management Job Aids page under the Core-CT Financials Asset Management User Support page (http://www.core-ct.state.ct.us/fin2/asset/Default.htm) and the Inventory Job Aids page under the Core-CT Financials Inventory User Support page (http://www.core-ct.state.ct.us/fin2/inventory/)

The completed CO-59 with a copy of the Summary Licensed Software Report and the
CO-648B (if applicable) must be sent directly to the Comptroller's Office, Fiscal Policy Division, 55 Elm Street, Hartford, CT 06106 Attn.: Michael Carragher. The Property Control Questionnaire should be emailed to OSC.Assets@po.state.ct.us

V. QUESTIONS
Questions regarding the completion of the CO-59, licensed software report, questionnaire or CO-648B should be directed to OSC.Assets@po.state.ct.us. All forms should be printed from the Comptroller's website under Comptroller's Forms at http://www.osc.ct.gov or by selecting the form link on page one of this memorandum.

NANCY WYMAN
STATE COMPTROLLER

NW:CH

Attachment: Property Control Questionnaire

Return to Index of 2010 Comptroller's Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page